Asian currencies mixed late after rupiah recoups loss

Asian currencies mixed late after rupiah recoups loss

SINGAPORE (Dow Jones): Asian currencies were mixed late
Thursday, after the Indonesian unit's failure to test the
psychologically-important Rp 9,000 support level helped most of
its other Southeast Asian counterparts recoup their losses,
dealers said.

The rupiah, the Singapore dollar and the Philippine peso were
firmer, while the Thai baht continued to be weighed on by dollar
demand from corporates and offshore players, dealers said.

In Northeast Asia, a slide in the local stock markets and a
weaker yen dented the South Korean won and the New Taiwan dollar,
although aggressive intervention by Taiwan's central bank
staunched the latter currency's decline, dealers said.

Dollar-selling by state banks and profit-taking by offshore
participants salvaged the rupiah, which had earlier in the day
threatened to test the psychologically-important Rp 9,000 level.

Around 0820 GMT, the dollar was at Rp 8,575, down from Rp
8,775 late Wednesday.

The dollar had advanced to as high as Rp 8,890 in early
trading Thursday, extending late Wednesday's sharp losses. A
powerful explosion that ripped through the basement carpark of
the Jakarta Stock Exchange Building late Wednesday dealt a fresh
blow to sentiment, already bruised by mounting concerns over
political and social instability in the country.

"The bombing itself is negative in terms of the investment
attractiveness of the country," said Philip Wee, a treasury
economist at Standard Chartered Bank.

The explosion took place just a day before the resumption of
former president Soeharto's corruption trial. As widely expected
by the market, the trial was adjourned for a second time Thursday
when the court appointed an independent medical team to determine
whether he is fit to stand trial.

However, the rupiah's swift pullback Thursday doesn't herald a
recovery for the beleaguered currency, which will likely remain
vulnerable to the country's political and social malaise, some
analysts said.

Wee at Standard Chartered Bank said the rupiah is technically
poised to hit Rp 9,200 to the dollar "in the next couple of
weeks."

The Singapore dollar also recovered sharply, with the U.S.
dollar falling back below S$1.7400 psychological support, thanks
to a reversal in the rupiah's fortunes and the euro's rebound.

At 0945 GMT (5:45 a.m. EDT), the U.S. dollar was at S$1.7392,
down from S$1.7445 late Wednesday.

The euro was at $0.8697, compared with $0.8591 late Wednesday
in New York.

In Manila, the dollar ended at 45.605 pesos on the Philippine
Dealing System, after climbing to as high as 45.95 pesos early
Thursday, its strongest level against the Philippine currency
since touching 46.50 pesos Jan. 7, 1998. The dollar closed at
45.690 pesos Wednesday.

In contrast, the Thai baht benefited little from the rebound
of its Southeast Asian counterparts.

The dollar briefly touched a two-year high of 41.85 baht in
early trading, but rapidly pulled back on reported comments by
Thai Deputy Premier Supachai Panitchpakdi that he was "concerned"
about the baht's weakness, and that he would discuss it at the
weekly economic ministers' meeting Monday.

Late Thursday, the dollar was at 41.725 baht, up from 41.655
baht late Wednesday.

Elsewhere, foreign equity fund outflows, which contributed to
a slide on the South Korean bourse, the bearish sentiment toward
the semiconductor industry and a weaker yen hammered the South
Korean won, dealers said.

The dollar closed at 1,115.1 won, up from last Friday's close
of 1,108.5 won. Korean financial markets were closed Monday
through Wednesday for the Korean Thanksgiving holiday.

Against the Japanese yen, the dollar was quoted at Y107.21, up
from Y107.12 late Wednesday in New York. The dollar was at
Y106.95 late Wednesday in Tokyo.

The New Taiwan dollar closed at a new eight-month low against
its U.S. counterpart on continued U.S. dollar-buying in the non-
deliverable forward market and a slump on the local bourse,
dealers said.

The U.S. dollar ended at NT$31.125, up from NT$31.112 late
Wednesday. Thursday's close was the lowest level since Dec. 30,
1999, when the New Taiwan dollar finished at NT$31.395.